Boomers like age-restricted housing

November 28, 2005|By Eileen Rivers, The Washington Post

WASHINGTON — When Joanne and Gary Leonard started house-hunting in September, they knew exactly what they were looking for: two bedrooms, a pantry kitchen and a community pool. A quiet neighborhood, Joanne Leonard said, was a plus.

A few weeks later, they found exactly what they wanted -- a new condominium in the Gatherings at Cedar Ridge, a development for people 55 and older in the planned community of Piney Orchard, in suburban Anne Arundel County, Md.

FOR THE RECORD - This story contains corrected material, published Nov. 30, 2005.

"The pantry is a very good thing to have," Joanne Leonard said. "We'll upgrade the kitchen cabinets, the countertops, later." She and her husband both like the size of the rooms, the high ceilings and the column-lined entryways.

The most important thing, they said, was the floor plan. The condo's two bedrooms, living room, dining room, kitchen, small den and sunroom are all on one level. That is perfect for Gary Leonard, 54, who has a hard time walking up stairs because of arthritis.

As the Baby Boom generation begins to retire, couples like the Leonards are making 55-and-older developments one of the fastest-growing markets for homebuilders nationwide. More than 25 percent of the 1.2 million new homes projected to be built this year will be bought by someone older than 50, according to the National Association of Home Builders (NAHB).

There is one obvious reason for builders to be particularly interested in Baby Boom buyers: disposable income. Many Boomers are selling a home to downsize, said Mark Stemen, president of the Washington active adult division of K. Hovnanian Cos., a Virginia development company. Some are able to pay cash, a convenience that younger buyers, just starting a family, often don't have.

Different demands

The Boomers want a more appealing retirement than their parents had, and their demands are reshaping the housing market, said Debbie Miller. The McEnearney Associates agent specializes in 55-plus housing, which is often packed with luxury homes, clubhouses, billiard rooms, cafes, walking trails, community centers and gyms.

"This is not your father's Oldsmobile," Miller said. "It's much trendier and more sophisticated. The Boomers don't want to live a stodgy life. They want activity. They want to be closer to theaters, restaurants."

They don't want the weekly yard maintenance that comes with larger, single-family homes, Miller said. "They also want lock-it-and-leave-it convenience," meaning they can take extended trips at their leisure and at a moment's notice, without having to worry about taking care of their house.

Jeff Jenkins, assistant director of the NAHB's 50+ Division, agreed. "The days of shuffleboard are long gone," he said. "These buyers today are more sophisticated. They're more affluent. They want to be engaged on many different levels."

Not all of them automatically look for an "active adult" development. "We looked at several places, some of which weren't retirement communities," said Joanne Leonard, a 3rd-grade teacher.

"We realized if you wait the prices are just going to go up. We also realized that this is going to be a hot market for buyers seven years from now. Why wait? We also like the fact that this is a quiet community."

Staying close to home

Unlike previous generations, which traditionally flocked to the Sun Belt regions of Florida, New Mexico, Nevada, California and Arizona, Baby Boomers are more likely to look for retirement housing not far from where they spent most of their adult lives, a trend that has slowly developed over the last decade, Jenkins said.

In 1995, 78 percent of active-adult communities were built in Sun Belt states, NAHB figures showed. Today, that percentage has dropped to less than half.

"I think we recognized pretty early this trend that folks didn't want to necessarily pull up stakes," K. Hovnanian's Stemen said. "People are living longer. Some still work. There's a longer period of time post-55, when folks are active and able and ready to enjoy themselves. The major difference is that you see this strong concentrated emphasis on creating lifestyle."

K. Hovnanian got into the retirement housing market in the 1960s, selling Florida condominiums to New York and New Jersey retirees. The company began developing floor plans based on an active adult lifestyle in the early 1990s. Today, it has "Four Seasons" properties in Maryland, Virginia, Texas, California, Pennsylvania, North Carolina and South Carolina.

Bozzuto Homes, a Greenbelt, Md., housing manufacturer, has built developments aimed at the general population with such amenities as one-level floor plans and elevators that cater to the needs of Baby Boomers and their elders.

Those age-oriented designs are increasingly popular, said Chuck Covell, president of Bozzuto Homes.